This invention is generally concerned with authenticity verification systems for use with transaction cards and is specifically concerned with transaction cards which are operable for self-enabling and self-disabling in response to authenticity procedures and methods. Cards such as "smart" cards, credit cards, debit cards, access cards, et cetera, are common forms of a general group known as transaction cards.
Certain transactions between unfamiliar persons or transactions between persons and machines sometimes require security measures which provide verification of the authority of the person making the transaction. Examples of such transactions may include but are not limited to: access to restricted locations, financial or "point-of-sale", simple personal identification, and document authentication. The degree of security and hence complexity of the system varies depending upon the task at hand. For example, secured areas may have access restrictions which limit admission to certain persons having access authority. Sophisticated systems which interrogate biometric features such as cornea patterns or fingerprints have been used to identify authorized persons for access. Alternatively, a driver's license has a simple photograph to associate the document with a particular person and to prevent use of the document by others. Passports may include photographs and further use of official seals or holograms to provide for authenticating the documents. Each of the described situations have the requirement that an authorized person be properly identified. Whereas security for access to restricted locations typically require extremely sophisticated verification means, and whereas driver's license documents may be sufficiently authenticated by simple photographs, point-of-sale (POS) transactions have typical requirements intermediate between those for access control and driver identification.
Features of POS transactions systems include: the requirement that the system be quick and easy to use; does not require salespersons attention or time; supports a large number of transactions; is tamper resistant; and is compatible with common devices presently in place, for example credit cards, debit cards and others. Indeed, as is illustrated by recent activity in development of various systems, great attention has been directed to POS authentication devices and methods.
Cash has the inconvenience of being: usable if found by others (non-criminal use); improperly counted; mislaid; stolen (criminal use); or other misuse. It is therefore desirable to reduce exposure to loss resulting from the use of cash by employing another means of money transfer. Credit cards are commonly used, but fraudulent use of credit cards is an expensive problem. Debit cards which typically employ moderate level security systems for identification purposes such as entry of a personal identification number PIN in addition to presentation of a card with corresponding data, reduces fraud but still suffers from some compromise. By watching the legitimate user enter a PIN, a thief can acquire that code and other account information necessary to later steal from the account. Elaborate schemes involving fake ATM machines have also been used to obtain account information and PIN codes. As all of these unauthorized uses are very expensive to card issuers and ultimately to consumers, it is desirable to increase the security of the systems. To that end several attempts have been made to introduce new systems to POS transactions which reduce the fraudulent use of transaction cards.
In U.S. Pat. No. 5,180,901 inventor Hiramatsu teaches of a pressure sensor for inputting finger characteristic data. An authorized user having particular finger characteristics could activate the card but others could not. Inventors Butterworth teach of a keypad which receives a code and responds with a light signal to indicate authenticity in U.S. Pat. No. 4,879,455. An elaborate scheme worked out by Muehlberger in U.S. Pat. No. 5,285,382 yields a method for processing credit and debit cards for valid use. There is no shortage of good inventions in the field and the demand for security is very high.
Notwithstanding, new techniques have now been discovered which provide very novel uses of transaction cards, particularly with respect to point-of-sale type transactions. In contrast to the good and useful inventions mentioned, each having certain useful features, the instant invention is concerned with the enablement and disablement of a transaction card via writing and erasing data to a magnetic stripe thereon the card in response to a user input.
Systems of the invention are distinguished from those of the prior art in that they provide a very high level of compatibility with present standard systems in use yet provide a higher level of security than is attainable by devices and methods of the art. In particular, the invention provides a card which is operable for receiving a user input, validating that input and responding to valid input by enabling a standard format magnetic stripe, and further operable for disabling same magnetic stripe after use thereby preventing further use by unauthorized persons.